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Iridium Communications Offers Excellent Value For Long-Term Growth Story

Overview

I believe Iridium (NASDAQ:IRDM) is a very compelling long opportunity for several reasons:

  1. Concentrated industry with few competitors and extremely high barriers to entry
  2. Recurring revenue model incorporates high-margin subscription revenues and strong incremental operating margins
  3. Anchor customers in the Department of Defense and major air navigation service providers
  4. Significant growth potential in hosted payload offerings and Aireon joint venture
  5. Extremely cheap valuation relative to operating EBITDA (OEBITDA), free cash flow, and peer group comparable multiples offers a solid margin of safety

Iridium is the second largest provider of mobile voice and data communications service via satellite, and is the only commercial provider of communications services offering true global coverage. Through a constellation of 66 low-orbit satellites,...

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